3 Stocks Driving Emerging Markets ETF AVXC’s Hot Start to 2026

Foreign equities ETFs were a star category last year for investors. Can they repeat in 2026? That’s the focus of much recent discussion, especially as geopolitics and U.S.-based uncertainty loom. With almost a month of 2026 in the books already, however, some funds are already showing signs of a strong repeat performance. Emerging markets ETF AVXC is one such fund; these three stocks help illustrate its healthy returns to start the year.

See more: Bull vs Bear: Can Foreign Equities Repeat in 2026?

AVXC, the Avantis Emerging Markets ex-China Equity ETF, charges a 33 basis point fee for its approach. The strategy, from American Century Investments shop Avantis Investors, leans on the firm’s “systematic active” approach in making its investments. 

Its rules-based, active emerging markets ETF strategy invests in ex-China equities with high profitability and value metrics. Its managers also consider measures like book value vs. operations cash ratios while assessing opportunities. The emerging markets ETF weights investments by market cap and return potential. The fund has returned 11.26% over the last month applying that strategy, according to ETF Database data. 

Which stocks, then, are driving the fund’s strong start? Its investment in East Asia ex-China tech names has certainly played a part in its growth. Its second-largest holding, Samsung Electronics Co., Ltd. Sponsored GDR (SMSN), has performed well over the last one month period. Specifically, its stock in South Korea has done well, up 35.9% in that time. 

SK Hynix (000660), also in South Korea, has seen strong returns as well to start the year. The stock has returned 31.4% in the last month. Finally, Taiwan-based semiconductor firm MediaTek (2454) has returned 25.35% in that time. 

That trio, some of the biggest names in East Asian tech equities, has helped AVXC get off to that healthy start. Whether they can continue to help drive the fund forward is another question. Still, with its adaptable, active approach and tight focus, the fund could be one to watch.

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